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You've just contradicted yourself on so many levels it's not even funny. You're technically correct in saying that simply possessing a credit card does not mean going into debt... If you ever wish to actually use it however, you're in debt. Even if it's to buy a stick of gum.
Not unless you're using some very odd accounting practices. Tell me, how am I in debt if I use my card only to purchase items I already have the cash to pay for, and set up automatic payments so the card balance is paid off in full every month? Functionally it's no different than if I'd paid via a check or debit card - except for all the extra benefits and protections using the credit card gives me, of course.
People who get into debt from using credit cards are spending beyond their means. It's a spending problem, not a credit card problem.
If you pay the bill before the retail transaction goes through you are NEVER in debt on that card unless you have a pre-existing balance.
But rational people won't much care either way. If you're a Dave Ramsey acolyte, maybe. Most people won't get their panties in a knot if someone gives them interest-free credit for 30-45 days.
Not unless you're using some very odd accounting practices. Tell me, how am I in debt if I use my card only to purchase items I already have the cash to pay for, and set up automatic payments so the card balance is paid off in full every month? Functionally it's no different than if I'd paid via a check or debit card - except for all the extra benefits and protections using the credit card gives me, of course.
People who get into debt from using credit cards are spending beyond their means. It's a spending problem, not a credit card problem.
You pay interest on your purchases and it's functionally different because once you make that purchase you're indebted to your master, I mean credit card company. If you already have the dough and you're worried about protecting your purchase outside of retaining your receipt, then use a debit card. Hopefully everyone here knows the difference between a debit card and a credit card, you'd be shocked to know how many people think they're one and the same.
I tore up my credit cards 30 years ago and have worked off of cash and my debit card ever since. I've traveled, paid for hotels, rented cars, and done all the things you have described. I simply like to know I can afford something before I buy it.
Might not work for everyone, but I live comfortably, drive nice cars, spend money whenever I want, and have been able to put away money because of my being careful.
Don
Sure, it works, but you could have done the same due diligence and still used credit cards for those 30 years. Just because someone has credit cards doesn't make them irresponsible or oblivious.
You pay interest on your purchases and it's functionally different because once you make that purchase you're indebted to your master, I mean credit card company. If you already have the dough and you're worried about protecting your purchase outside of retaining your receipt, then use a debit card. Hopefully everyone here knows the difference between a debit card and a credit card, you'd be shocked to know how many people think they're one and the same.
I think you meant credit card. A debit card will not provide the same level of protection. Then there are the rewards which give you an effective 1-5% discount.
You pay interest on your purchases and it's functionally different because once you make that purchase you're indebted to your master, I mean credit card company. If you already have the dough and you're worried about protecting your purchase outside of retaining your receipt, then use a debit card. Hopefully everyone here knows the difference between a debit card and a credit card, you'd be shocked to know how many people think they're one and the same.
No. Someone using a CC and paying it off at the end of the month pays NO interest. ZERO INTEREST accrues if you pay your bill every month.
In my case I make 1% back on all my purchases. I MAKE money by using the card for purchases I would otherwise be making anyhow.
I think you meant credit card. A debit card will not provide the same level of protection. Then there are the rewards which give you an effective 1-5% discount.
No, I meant debit card. Since he's concerned that purchasing items with cash won't give him any protection.
Quote:
Originally Posted by Keim
No. Someone using a CC and paying it off at the end of the month pays NO interest. ZERO INTEREST accrues if you pay your bill every month.
In my case I make 1% back on all my purchases. I MAKE money by using the card for purchases I would otherwise be making anyhow.
Depends on the company. And most people don't pay their credit card balance back in full every month, they pay the minimum balance due.
No, actually I don't. Interest is only charged on balances that are carried over to the next billing cycle. Since I pay my card balances off in full every month, I don't pay a dime in interest.
Quote:
...and it's functionally different because once you make that purchase you're indebted to your master, I mean credit card company.
More nonsense. You might as well say I'm indebted to my masters, the utility companies, because I pay my utility bills monthly, which means that before the bill is paid I owe the utility company money. Does the knowledge that you owe the utility company a monthly payment keep you up at night? If not, then why worry about a similar credit card payment?
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If you already have the dough and you're worried about protecting your purchase outside of retaining your receipt, then use a debit card.
As has been explained REPEATEDLY in this thread, debit cards DO NOT offer the same levels of consumer protection as credit cards do - not even close.
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